A Case Analysis on Starbucks’ Mission: Social Responsibility and Brand Strength
Submitted To Professor Panda
University of Maryland Eastern Shore Department Of Business School &Technology
In Partial Fulfillment Of The Requirement BUAD300
By: Michael Kunle-Kehinde
February 4 2013
Summary Named after the first mate in Moby Dick, Starbucks was founded in 1971 by three partners in Seattle’s renowned open-air Pike Place Market. Starbucks is now the third largest restaurant chain in the country, nearly 1,000 stores in 55 countries. It was the intention of director of retail operations and marketing Howard Schlutz to make Starbucks into “the third place” consumers frequent, after home and work. You can find a Starbucks in …show more content…
During the 2008-2009 recession, they decided to refocus their strategy. They closed several hundred underperforming locations in response to the economic downturn. They also introduced “breakfast pairings”, a Starbucks-styled value meal, for an affordable price. They even introduced an instant coffee consumers can brew at home. Due of their substantial growth over two decades, they have spent a considerable amount of time defending their image, due to their “clustering” strategy to many small coffee shops out of business and many consumers began to wonder if there really was a need for two Starbucks right across the street from each other. Finally Starbucks has been so concerned with social responsibility in its overall corporate strategy because it's popular! Also it helps the company’s image, to care about the community and the environment. Those are positive standpoints that define the company’s self portrayal, it's important how you look on the outside but in the end it's all about sales!
2. Is Starbucks unique in being able to provide a high level of benefits its employees?
Most companies, though they value their employees, have not been known to put them on the pedestal employees of Starbucks have been put on. Founder Schlutz key to maintain a strong business is “creating an environment where everyone believes they’re part of something larger than themselves but believes they also have a voice.” Nonetheless Starbucks benefits